Seema Srivastava Vs ITO (ITAT Patna)
Filed ITR In a Hurry? Quoted Wrong Section? Don’t Panic – ITAT Comes to Rescue.
1. The ITR (income tax return) filing has just passed. Many taxpayers were expecting at least a month’s extension, but this time, the deadline of 15th September was extended by only a single day. In the rush to meet the deadline, some may have entered incorrect details, claimed exemption under the wrong section, or made an inadvertent mistake in their returns. Taxpayers who have quoted the wrong section need not panic. In such cases, the ITAT may step in for rescue, as seen in the case below.
2. Case Background: Ms Seema sold land worth Rs 4.5 crores and invested the entire proceeds in residential property. While filing her return, she mistakenly claimed a deduction under section 54 instead of section 54F.
“Section 54F of the Income Tax Act, 1961, grants a tax exemption from long-term capital gains (LTCG) where the gains arose from the transfer of any long-term capital asset other than a residential house property, provided the taxpayer invested the net sale consideration in the purchase or construction of a residential house in India within a specified time period.”
